The Georgia Department of Transportation has declined Kinder Morgan’s application for a certificate of public convenience and necessity (CPCN) for its proposed Palmentto Pipeline.
The North America energy company said that it was disappointed with the outcome and that it believes it has demonstrated the benefits that the project will bring, including the fact that it will provide safer transportation of refined products.
It adds that it will ‘pursue all available options to move forward with the project’.
A CPCN is a form of regulatory compliance certification for public service companies. Companies must be granted a CPCN before constructing facilities and offering services.
President Ron McClain says: ‘The fact the proposed pipeline is fully supported by long-term commitments from multiple customers seeking safer and more efficient supply options, and that it was so vehemently opposed by certain existing refined petroleum suppliers with vested economic interests in maintaining the status quo of artificially higher prices, is itself compelling evidence that the pipeline will serve the needs that are not being met by current supply options.
‘We continue to believe in the viability of the project and its economic benefits to the southeast region and Georgia in particular, and we plan to pursue all available options to move forward with the project.’
The proposed pipeline will allow refined petroleum products to be transported from Baton Rouge, Louisiana, Collins and Pascagoula, Mississippi, and Belton, South Carolina, to North Augusta, South Caroline, Savannah, Georgia, and Jacksonville, Florida.
It will have a capacity of up to 167,000 barrels per day. A new 360-mile pipeline from Belton, South Carolina to Jacksonville, Florida, will also be built.